Forex- U.S. Dollar Surges As Geopolitical Tensions Ease

Investing.com – The dollar rose on Tuesday, as Middle East and China-U.S. trade relations eased.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.20% to 89.32 by 11:21 AM ET (15:21 GMT).

Geopolitical tensions eased on Tuesday but remained on the back of investors minds. Risk appetite has improved, after U.S.-led missile strikes on Syria over the weekend did not lead to an escalation into a broader conflict.

The dollar was also supported by economic data. rose by 1.9% in March, to a seasonally adjusted annual rate of 1.319 million units last month, the Commerce Department said. A separate report showed that also rose, supporting a strong economic outlook for the U.S. economy.

The dollar had come under pressure on Monday after U.S. President Donald Trump . The tweet followed a report from the U.S. Treasury Department that declined to name China as a currency manipulator.

The dollar gained ground against the yen, with rising 0.29% to 107.61. The safe haven yen is often sought out by investors in time of market turmoil and political tensions.

The euro continued to fall, with down 0.26% to 1.2347.The euro came under some selling pressure after a report showing that German economic sentiment deteriorated sharply again in April amid concerns over heightened international trade tensions.

The pound eased back from 22-month highs against the dollar after UK jobs data on Tuesday showed that wage growth missed estimates, but a cost of living squeeze is still easing. fell 0.17% to 1.4314.

The Australian dollar was lower, with down 0.14% to 0.7770 while decreased 0.39% to 0.7334.

In Canada, the loonie rose, with falling 0.06% to 1.2561.